Webvan Group, Inc. (Nasdaq:WBVN), the “last mile” leader in e-commerce, today completed its acquisition of HomeGrocer.com (Nasdaq:HOMG) of Kirkland, WA. Under terms of the transaction approved August 31 by the stockholders of both companies, HomeGrocer stockholders will receive 1.07605 shares of Webvan common stock for each share of HomeGrocer common stock. Approximately 138 million shares of Webvan stock will be exchanged for all currently outstanding shares of HomeGrocer.com.
“With this merger we have responded rapidly and aggressively to the changing dynamics of the online marketplace,” said George T. Shaheen, president and chief executive officer of Webvan Group, Inc. “By combining with HomeGrocer, Webvan now has a larger national footprint. We are financially stronger, more nimble, and better positioned to revolutionize the way America shops. Webvan recognizes that championing the ‘last mile’ of e-commerce requires a tightly integrated organization with a steadfast focus on customer satisfaction. Today, Webvan stands alone in its ability to meet this objective and offer consumers a complete and frictionless shopping experience.”
As a result of the merger, Webvan now operates in nine major metropolitan areas. By the end of the year, as a result of the merger, Webvan expects to serve metropolitan area markets in Atlanta, Baltimore, Bergen County (NJ), Chicago, Dallas, Los Angeles, Orange County (CA), Portland (OR), Sacramento, San Diego, San Francisco, Seattle, and Washington, D.C., from facilities in ten of these markets.
For the near term, Webvan will continue to operate under the HomeGrocer brand and Web store in Southern California, Dallas, Portland, and Seattle. A full transition to the Webvan brand name and the integration of the companies’ technology platforms are expected early next year.
Webvan Group, Inc. is setting a new standard for Internet retailing, combining for the first time the convenience of online shopping with a personalized courier service that delivers products into customers’ homes within a 30-minute window of their choosing. Through its Web site, http://www.webvan.com, Webvan offers a broad selection of quality products at competitive prices. The company’s relentless focus on customer service, innovation, and value saves its customers time and money. Webvan’s corporate headquarters are located in Foster City, CA.
Safe Harbor Statement under Private Securities Litigation Reform Act of 1995: The statements contained in this press release that are not historical facts, including statements relating to financial strength and integration of the companies’ technology platforms, are forward-looking statements that involve certain risks and uncertainties, including but not limited to risks associated with: achieving savings and operating efficiencies as well as margin enhancements from the merger; actual costs of the merger; difficulties in successfully integrating Webvan’s and HomeGrocer’s businesses and technologies; and difficulties of successfully managing a larger, more geographically dispersed organization.